NMC reports third quarter losses
A struggling construction industry is having "a significant adverse effect" on loss-making North Midland Construction (NMC), the company said this morning.
Sutton-in-Ashfield-based NMC reported a loss of £300,000 for the quarter from July to September. This was produced on revenues of £38.7m.
The company said it does not anticipate a significant improvement in underlying trading performance during the final quarter of 2011.
NMC said the losses were primarily due to poor trading in its Building subsidiary, which is currently undergoing "radical restructuring".
"The building subsidiary is still experiencing delays and cost-overruns on the major project referred to in previous trading statement," said NMC."A contractual claim for recovery of losses is currently being pursued."
Its Nomenca, Highways and Civil Engineering businesses all performed well, said the company.
However, its utilities division was hit with the loss of a Virgin Media term contract. NMC said replacement frameworks have now been secured, "but did not commence within the period". Both profit and revenue declined in the quarter compared with the previous year.
